A price or price range at which technicians expect the price of a security to bounce one or more times before breaking through to the upside. Resistance is typically caused by an abundance of sellers and a shortage of buyers at that price level. Technicians believe that the strength of a resistance point is determined by the significance of the trading that created it. For example a trading range that spanned many months will present more resistance to price penetration than the trading range for the previous day.
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Efficient Market Hypothesis
Banking Act Of 1933
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